Advice Line | Bob Lewis » A smooth transition from one employer to another

June 05, 2007 | Comments: (0)

A smooth transition from one employer to another

TAGS: General

Dear Bob ...

I've been working in the same job, same boss for the last 12 years. I'm well liked both personally and professionally by boss, his boss's; co-workers, non-IT stuff and a few external customers that I support.

We've got a major change coming that might mean my job isn't needed in years to come. In short, migrating off the software I develop and support to one provided by an external company. I can see work for the next year or so but beyond that, not sure. These are my thoughts not the companies.

About 6 months ago (6 months after change was announced) I expressed a desire to work 1 day a week at my church. A bit of negotiation but all went well.

Now, i've handed in my notice to current employer saying that I want to work with church full time. But the way it works, I could still work one day a week here; could do after hours stuff from home; and, with the blessing of the church, when major things occur over the next year or so with migration I can come back for a few weeks at a time or as the case may be.

Boss took the news well; he'd prefer me to stay but acknowledges why i'm leaving and the opportunities that my current place can't offer. He's supportive.

Bottom line: Church is willing to be flexible, I'm willing, and by the looks of it, so is my boss and his bosses.

My question comes down to salary.

Currently I get the usual conditions for my area; paid holiday, paid sick, public holidays, superannuation. Presently i'm paid 4/5 of my normal salary given that i'm working 4 days a week here.

If I go to one day a week, i'm thinking that 1/5 is probably not the right rate to go for. I'd get 1/5 the holidays, 1/5 the sick; but not really 1/5 the public holidays 'cause it would depend on when they occur.

Plus, I'm thinking that you're really wanting to keep me on for my skills for migration; that's worth something and is probably more than 1/5.

Should I go for a "pay rise" on the basis that you're actually saving a pile of money with me not being here; not replacing me as such; but still getting the benefit ?

This is actually a separate consideration to how I get paid; I could stay on as an employee, I could become a contractor. For the latter I'd definately do the sums with superannuation, sick, holiday etc; but so will they and they will know if i'm asking for more than the current rate.

Any advice?

- Moving on

Dear Moving ...

First of all, congratulations for engineering a first-class transition. This is the way to leave a company when you see your role evaporating: Good feelings all around, no time spent moping about the unfairness of it all, and you're working in a great situation for an employer you like.

Well done!

To answer your question: Your new role at your old place of employment sounds a lot more like a 1099 relationship than a W2 relationship. There is never any guarantee of how the IRS will look at the situation, of course. My advice on that front would be to let the company's HR department worry about it.

So I think you should suggest to your boss that he hire you as a contractor rather than keep you on as a part-time employee. Base your rates on local contracting rates rather than on your old salary, but fiddle and adjust with your old salary in mind. You want to avoid creating sticker shock. It could damage a relationship that right now is remarkably positive.

If, no matter how much you fiddle and adjust, you still end up with a consulting rate that's a multiple of your salary rather than an increment over it, it's time for a conversation with your old boss about applied theoretical microeconomics. It goes like this: If you only charge a rate equivalent to your old salary, but could easily make double that amount contracting with any other company in town, you have a serious financial incentive to do so.

You want to support your old employer through the transition, and to do so it's important for both sides that you don't have a powerful economic incentive to find a more lucrative client.

You want to do what's fair - what does he think makes sense for both of you?

- Bob

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Posted by Bob Lewis on June 5, 2007 08:14 AM

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